European Investment Bank (EIB) provided €243 million green loan to independent wind and solar energy operator ERG Group to boost the development of renewable energy projects in Italy, France, and Germany. The loan supports EU renewable energy targets and also enables Italy, France, and Germany to meet national climate commitments.
The financing supports ERG’s 2024-2026 plan to expand renewable energy by launching new projects and upgrading existing ones. The loan will fund three new wind farms in France, repower two in Italy, and upgrade seven solar plants there. As part of the deal, the repowering of one wind farm in Germany will also be done. These projects will have a capacity to produce 270 megawatt (MW), which is enough to power over 200,000 families per year.
Also read: EIB Announces €100 Million Financing for Marcegaglia’s Sustainability and Innovative Initiatives
More than 97% of the capacity will support the development of cohesion regions in the EU, which are often the least economically developed. Focusing on cohesion regions will boost local economies and support the EU’s regional development and energy transition goals.
The EIB loan exceeds the bank’s standard 50% financing capacity, reflecting the project’s alignment with the EU’s REPowerEU initiative. This initiative will reduce Europe’s reliance on fossil fuels and acceleratethe transition to renewable energy. Pursuing these objectives, the EIB plans to invest another €45 billion in green energy projects by 2027. The EIB increased the loan ceiling to 75% for projects like ERG’s, offering flexible terms and more significant disbursements.
Also read: Lithuania and EIB Launch €100 Million Initiative for Greener Housing and Energy Efficiency
The EIB’s Vice-President, Gelsomina Vigliotti, said, “This project shows the EIB’s commitment to promoting sustainability and reducing greenhouse gas emissions, in line with the goals of the European Green Deal and REPowerEU. The only way to cut fossil fuel imports and achieve European strategic autonomy is to expand energy generation from renewable sources.”
The ERG Group exited the thermoelectric sector in 2023 and now generates all electricity through renewable sources. It focuses on the transition towards a net-zero emissions balance of its value chain by 2040. This underlines the importance of ERG Group for sustainability and presents a traditional energy company, moving towards cleaner energy solutions.